Tariffs on certain goods from France were added to the tariff schedule and took effect on Jan. 6, according to the ITC’s change record. The additional tariffs on certain products were announced in July 2020. Section 301 tariffs announced by the U.S. Trade Representative (USTR) in July in retaliation for France’s digital services tax (DST) were implemented. The additional 25% duty applied to French manufactured handbags, soaps, and cosmetics.
However, in a press release issued by the USTR Jan. 7, they stated that they have suspended the tariff action in the Section 301 investigation of France’s DST. The decision to suspend the tariffs is in light of the ongoing investigation of similar DSTs adopted or under consideration in ten other jurisdictions. These investigations have moved forward but have not yet reached a determination on trade actions.
The USTR has stated that, “A suspension of the tariff action in the France DST investigation will promote a coordinated response in all of the ongoing DST investigations.”
The suspension and modifications of the France DST tariffs is also outlined in a notice published in the Federal Register.
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